John Bacon of Keller Williams Realty is a Certified Distressed Property Expert (CDPE) and points out that "Nationwide, 10.9 million or 22.5% of all homeowners with a mortgage owe more on their property than its worth in the current market, and another 6.3 million are in some stage of foreclosure."
Bacon goes on to say that the long-term implications of undergoing foreclosure shouldn't be underestimated, and he has developed a report entitled "Need a Helping Hand?" which can be accessed from AvoidForeclosureInOregon.com, which gives readers important information and alternatives to their current situation.
"Too often, the anxiety associated with missed mortgage payments and the fear of putting trust into the wrong hands, causes homeowners who are heading toward foreclosure to avoid seeking help or pursuing a short sale because the stress of their situation has many barely coping," says Bacon, and "According to national statistics, 50% of those foreclosed never sought help or alternatives."
There are currently a number of different programs being put forward by lenders to assist homeowners with loan modifications, or which help borrowers leave their homes in a way which avoids foreclosure. Most people are now familiar with the concept of short sales, and according to some economists this method of selling will become far more frequent during the next few years.
A short sale occurs when the current market value of the home is less than the mortgage, and is where a real estate agent will negotiate with the lender on behalf of the homeowner for them to accept a loan payoff which is less than the mortgage owed. Up until recently lenders were reluctant to agree to such sales, but the current price of foreclosure properties has meant many are now accepting short sales as a way of mitigating losses, and according to Bacon, "Some are even paying homeowners significant cash incentives to make a fresh start on their lives after the close of the short sale."
Real estate agents who have received the CDPE designation are required to complete two days of intensive training, and have proactively sought out the real estate industry’s best training for helping clients negotiate the complicated process of dealing with distressed property.